Daily Currency Update

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The Loonie gets a boost after the bounce in both crude oil and equity markets.

CAD - Canadian Dollar

The Canadian dollar is trading higher following the continued recovery of crude oil prices, which is helping the Loonie and the North American equity market to be in a bounce mode. However, market participants are weighing the prospects of reopening economies and additional Canadian fiscal stimulus against rising virus cases and weak economic data. The USD/CAD opened today’s session at 1.4160, tested the 1.4200 handle, and has been falling from there. Technically speaking, the USD/CAD broke to the downside -looking at a short-term chart- and it broke an upward support set at 1.4150. It reached 1.4066 after 9 am EST and it is trading at 1.4085 at this moment, but it might test 1.4012 if the positive mood in the stock market continues and if crude oil keeps its bounce alive.

Crude oil (June WTI futures contract) rises following reports of Kuwait cutting output. The number of coronavirus cases in Canada rose 5.5 percent of Wednesday. There is no Canadian economic data scheduled for release today.

Key Movers

In Europe, the purchasing manager surveys hit new record lows, but the Euro is being helped by the ECB’s decision to lend more openly against junk collateral to support financial markets and control panic. European Central Bank President Christine Lagarde has just told the EU’s leaders that the bloc’s gross domestic product could fall by as much as 15 percent and that they’ve done too little, too late. Lagarde spoke during a video conference meeting with the 27 European Union leaders on how to mitigate the economic fallout of the global pandemic. However, at the time of this writing, the Euro is falling against the Canadian dollar by 0.71 percent, and it has just turned around versus the U.S. dollar, increasing 0.1 percent.

Expected Ranges

USD/CAD: 1.3972 - 1.4077 ▼

EUR/CAD: 1.5123 - 1.5250 ▼

GBP/CAD: 1.7365 - 1.7474 ▼

AUD/CAD: 0.8943 - 0.9013 ▲

NZD/CAD: 0.8423 - 0.8556 ▲

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